Applicable TDS rate for sale of property in Nov 2024

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Quick Summary

When purchasing property from a Non-Resident Indian (NRI) in November 2024, the TDS rate is 12.5% on the sale proceeds. This rate is subject to a 10% surcharge and a 4% cess, bringing the total deduction higher. It's important to note that indexation benefits are generally not available for NRIs, which can affect the TDS calculation unless a lower deduction certificate is obtained from the Income Tax Officer.

raghuram K

raghuram K (Querist)
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20 November 2024 I am planning to buy a property located in Chennai, value being negotiated is Rs.80lacs. Seller is an NRI. I would like to know

a) the applicable TDS rate for the above transaction? Surcharge & Cess as applicable. I would like to know base TDS rate.
b) I read couple of responses in this forums and understand that Indexation benefit is not available for NRI. does this impact the TDS rate?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 November 2024 Unless the seller obtains lower tax deduction certificate from his Jurisdictional ITO, TDS has to be deducted at 12.5% +Cess over total sale proceeds if long term holding.

raghuram K

raghuram K (Querist)
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20 November 2024 Thank you, sir for quicker response.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 November 2024 You are welcome.